Atomic Weapons Establishment: Facilities Upgrade

Lord Drayson: My right honourable friend the Secretary of State for Defence (John Reid) has made the following Written Ministerial Statement.
	The Government made clear last year (Official Report, House of Commons, 21 July 2004, col. 348) their commitment to maintaining the effectiveness and safety of the nuclear deterrent including making the necessary investment in the facilities at the Atomic Weapons Establishment at Aldermaston and Burghfield. To that end agreement has been reached with AWE Management Limited (AWE ML) to take forward a programme of investment in sustaining key skills and facilities at the Atomic Weapons Establishment. This will include the provision of necessary extra supporting infrastructure. Local planning authorities will be consulted on this work in the normal way, under the provisions of the Planning and Compulsory Purchase Act 2005.
	The purpose of this investment of some £350 million over each of the next three years is to ensure that we can maintain the existing Trident warhead stockpile throughout its intended in-service life. In the absence of the ability to undertake live nuclear testing given that the UK has signed and ratified the Comprehensive Test Ban Treaty, it is necessary to invest in the facilities at AWE which will provide assurance that the existing Trident warhead stockpile is reliable and safe.

Coal Authority: Report and Accounts 2004–05

Lord Sainsbury of Turville: My honourable friend the Minister for Energy (Malcolm Wicks) has made the following Written Ministerial Statement.
	I have today laid before the House a copy of the Coal Authority Report and Accounts for 2004–05.

EU: General Affairs and External Relations Council, 18–19 July 2005

Lord Triesman: The General Affairs and External Relations Council (GAERC) will be held on 18–19 July in Brussels. My right honourable friends the Foreign Secretary (Jack Straw) and the Minister for Europe (Douglas Alexander) will represent the UK.
	The Foreign Secretary will make a short intervention at the start of the GAERC on the London bombings.
	The agenda items are as follows:
	Presidency Work Programme
	The Foreign Secretary will give a brief presentation on the GAERC work programme over the next six months. This is an information point only. His presentation will include a brief comment on presidency plans for the future financing negotiation and the future of Europe dossiers. Other key dossiers are: Africa/development, enlargement, UN summit, WTO ministerial and various EU summits (with India, China, Russia, Ukraine and Canada).
	Enlargement
	The Foreign Secretary will debrief partners on the most recent meeting of the Croatia Task Force where there was further consideration of Croatian co-operation with the International Criminal Tribunal for the former Yugoslavia. There was no change in the assessment. The Foreign Secretary will confirm our intention to return to this dossier in September. Commissioner Rehn will present the Commission's draft negotiating mandate for Turkey to the Council. We do not expect a substantive discussion.
	UN Millennium Review Summit
	Commissioner Ferrero-Waldner will present the Commission's communication on UN reform to the Council. Conclusions reiterating the EU's strong support for a successful UN millennium review summit outcome are expected to be agreed. These will cover the full range of EU priorities at the UN on development, security and human rights.
	Syria/Lebanon
	Syria will be discussed over lunch and will include a briefing from Terje Roed-Larsen, the UN Secretary-General's special envoy on the implementation of UN Security Council Resolution (UNSCR) 1559. As president we will underline the importance of the full implementation of UNSCR 1559 and 1595; support the new Lebanese Government; and call on Syria to contribute to regional stability in Lebanon, Iraq and on the Middle East peace process (MEPP).
	Middle East Peace Process (MEPP)
	High Representative Solana will debrief the Council on his recent (10–14 July) visit to the region. We then expect discussion to focus on disengagement (due to begin on 17 August). As president, our priorities remain to work to ensure that disengagement proceeds as smoothly as possible and that Gaza should be left economically viable. In this context, we will call for continued EU support to the work of Jim Wolfensohn, Quartet Special Envoy on Disengagement. As president, we will also highlight the importance of increased co-ordination between Israel and the Palestinian Authority on disengagement and continue to urge both sides to continue to implement their road map and Sharm el-Sheikh commitments.
	Iran
	The Council will hold a brief discussion on the results of the presidential election, EU/Iran relations and the E3 process. As president, we will call for a continuation of the existing foreign policy towards Iran and continuation of E3 dialogue.
	Zimbabwe
	The Council will discuss the crackdown by the authorities in Zimbabwe, which has destroyed housing and targeted informal traders. As president, we will be aiming for the agreement of Council conclusions, which make clear the EU's condemnation of these events and include consensus on the need to maintain EU pressure.
	Preparation of the EU-China Summit
	The EU-China summit will take place in Beijing on 5 September. The GAERC will discuss preparations for the summit. As president, we will update partners on the progress of negotiations with the Chinese. The GAERC will provide an opportunity for partners to feed in their thoughts and to discuss the EU-China joint statement which will record the summit conclusions and set out aspirations for deepening the EU's relationship with China.
	Uzbekistan
	There will be a brief discussion and the Council is expected to reiterate its concern over the situation in Uzbekistan and to condemn the Uzbek authorities' refusal to allow an independent international inquiry into the recent events in Andizhan. At the 13 June GAERC the Uzbek authorities were given until the end of June to allow for an international inquiry. With this deadline now passed, the EU will be considering a range of restrictive measures.
	World Trade Organisation (WTO)
	There will be a brief discussion by the Council. Peter Mandelson will report back to Foreign Ministers on the mini-ministerial in Dalian (12–13 July) and will give an assessment of how preparations are going in the run up to the end-July WTO general council in Geneva. The main trade discussion will however take place during the informal trade Ministers' dinner on 18 July.
	AOB—Estonia-Russia Border Treaty
	The Estonians have asked for the Estonia-Russia border treaty to be placed on the agenda. They will outline to partners why the ratification of this treaty has stalled and how they hope to take matters forward with the Russian Federation. We do not envision any substantial discussion.

Family Proceedings Cases

Baroness Ashton of Upholland: With the agreement of my right honourable friend the Secretary of State for Constitutional Affairs, I am pleased to inform the House that I have today placed in the Libraries of both Houses a copy of the response to the public consultation on disclosure of information in family proceedings cases involving children. Statutory instruments have also been laid today specifying the circumstances in which information can be disclosed from family proceeding cases involving children.
	Members will recall that there have been a number of difficulties about what information can be received from individuals and constituents and what Members of both Houses may then do with that information to advise or assist. Accordingly I would like to make a Statement about the effect of these rules; particularly, in terms of how they allow Members to fulfil their vital role in helping and advising those involved in family proceedings.
	Further to my right honourable friend Harriet Harman QC's Statement to the House on 14 October 2004, the proposed legislative amendments have now been made by Section 62 of the Children Act 2004, which came into force on 12 April 2005. This means that:
	Section 97 (2) Children Act 1989 has been amended so that it is no longer a criminal offence to publish information which identifies or is likely to identify a child as being involved in family proceedings, or the address or school of such a child; so long as publication is not made to the general public or a section of it (including the media);
	Section 12 (4) of the Administration of Justice Act 1960 has been amended so that disclosure of certain information is no longer a contempt of court where rules of court specify that such disclosures can be made; and
	a series of amendments have been made to current rule making powers to clarify that rules can be made specifying the circumstances in which disclosure may be made.
	The Government consulted on the proposed content of the rules of court. The consultation period closed on 23 March 2005. The responses have helped to shape the final content of the rules. The rules will come into force on 31 October 2005. Guidance will be published ahead of that date so that the various providers and recipients of information from family proceedings involving children heard in private will know what they are entitled to do with that information.
	The implications for Members of both Houses are that:
	A party to family proceedings involving children heard in private will be able to communicate to a Member the text or a summary of the whole or part of a judgment given in those proceedings. Members can also receive court orders, as that had been permitted since legislative amendments came into force on 12 April 2005. Members may use the information received for the purposes stated in the rules only. For Members, this means that once the text or summary of a judgment has been received, the Member may use that information for the purposes of giving advice, investigating any complaint or raising any question of policy or procedure. Members may of course refer the information to other appropriate bodies or agencies to fulfil the purpose. If it appears that further information is required, an application to the court will need to be made.

Government Car and Despatch Agency: Annual Report and Accounts 2004–05

Lord Bassam of Brighton: The Government Car and Despatch Agency Annual Report and Accounts 2004–05 have been laid before Parliament today, copies of which are available in the Libraries of the House.

Gulf Veterans: Mortality Data

Lord Drayson: My honourable friend the Parliamentary Under-Secretary of State for Defence (Don Touhig) has made the following Written Ministerial Statement.
	As part of the Government's continuing commitment to investigate Gulf veterans' illnesses openly and honestly, data on the mortality of veterans of the 1990–91 Gulf conflict are regularly published. The most recent figures for the period 1 April 1991 to 30 June 2005, were published on 14 July 2005 as a national statistic on the Defence Analytical Services Agency website.
	The data for Gulf veterans are compared to that of a control group known as the "Era cohort" which is made up of Armed Forces personnel of a similar profile in terms of gender, service, regular/reservists status and rank, who were not deployed to the Gulf. The "Era" group has been adjusted for a small difference in the age-profile of those aged 40 years and over, to ensure appropriate comparisons.
	Key points to note in the data are:
	there were 720 deaths among the Gulf veterans and 735 in the age-adjusted "Era" comparison group.
	the 720 deaths among Gulf veterans compare with approximately 1,150 deaths which would have been expected in a similar sized cohort taken from the general population of the UK with the same age and gender profile. This reflects the strong emphasis on fitness when recruiting and retaining service personnel.
	These statistics continue to confirm that UK veterans of the 1990–91 Gulf conflict do not suffer an excess of overall mortality compared with service personnel that did not deploy.
	I will place copies of the full notice in the Library of the House and it can also be viewed at www.dasa.mod.uk.

Holocaust Victims: Tax Exemptions

Lord McKenzie of Luton: My right honourable friend the Paymaster General has made the following Written Ministerial Statement.
	The Government propose to bring forward legislation in the next available Finance Bill to exempt from tax certain payments made in relation to bank accounts of Holocaust victims, as described below.
	The HM Revenue and Customs' extra-statutory concession Al00, introduced on 8 May 2000, provides a tax exemption for compensation payments made by UK banks under their scheme called Restore UK. The scheme is designed to identify and compensate claimants to dormant accounts opened by Holocaust victims and frozen during World War II under the Trading with the Enemy Act.
	Since the introduction of the extra-statutory concession it has come to light that comparable payments may be made to Holocaust victims or their heirs in respect of monies held by the banks of other countries. For example, claims may be made by victims or targets of Nazi persecution or their heirs through the Claims Resolution Tribunal (CRT) for Dormant Accounts in Switzerland in respect of monies deposited in Swiss banks in the period before and during the Second World War. The CRT was established as a consequence of the Holocaust victims assets litigation in America.
	The CRT awards made to the Holocaust victims or their heirs and any comparable payments made by the banks of other countries are outside the scope of ESC A100, because it is available only for payments made under the Restore UK scheme run by UK banks.
	Following discussions between the Association of Jewish Refugees and HMRC, the Government propose to bring forward legislation in the next available Finance Bill. The legislation will exempt from income tax and capital gains tax payments made to Holocaust victims or their heirs when they are broadly comparable to the awards made under the Restore UK scheme run by UK banks. This will include any amount designed to cover interest and inflation by increasing the account balance to make it a fairer reflection of the amount originally deposited. The exemption will be available whenever the award or payment was made, so long as the criteria set out in the legislation are met.
	The proposal is that there will be a provision in the legislation so that anyone who has included a qualifying payment in their self-assessment tax return and paid tax will be able to reclaim the tax, even if the normal time limit for amending the assessment has passed.
	The proposed legislation will also clarify the effect of the exemption for inheritance tax (IHT) purposes. Present-day recipients of these payments often derive their claim through intervening potential claimants who are now dead. The existing extra-statutory concession aims to ensure that the IHT affairs of these predecessors need not be re-opened because an account has been rediscovered. The Government propose that, when the accounts of Holocaust victims or their heirs are rediscovered and compensation payments are made in respect of them, legislation in the Finance Bill will include an exemption from death duties for intervening potential claimants who died before the respective award scheme was opened for claims.
	At the same time as bringing forward legislation to provide a tax exemption for compensation payments that are broadly comparable to the Restore UK scheme, the Government propose to take the opportunity to put on a statutory footing the exemption currently available under ESC A100 for payments made by UK banks. So that too will be included in the proposed legislation.
	UK building societies may participate in the Restore UK scheme and ESC Al00 applies to any compensation payments made by them to Holocaust victims or their heirs. The proposed exemption will include payments by the building societies of other countries.
	More information about the proposed tax exemption and guidance for anyone who thinks they may be able to claim back tax already paid on an exempt award is in the news release published by HM Revenue and Customs today at www.hmrc.gov.uk/individuals/holocaust.htm.

Lord Triesman: The latest report on the implementation of the Sino-British Joint Declaration on Hong Kong was published today and copies have been placed in the Library of the House. A copy of the report is also available on the Foreign and Commonwealth Office website at www.fco.gov.uk. The report covers the period from 1 January to 30 June 2005 and includes a foreword by my right honourable friend the Foreign Secretary (Jack Straw). I commend the report to the House.

IMF and UK

Lord McKenzie of Luton: My right honourable friend the Chancellor of the Exchequer has made the following Written Ministerial Statement.
	I am today publishing the sixth annual report to Parliament on UK operations at the IMF, A Stronger Global Economy—The UK and the IMF 2004–05. Copies are available in the Library of the House.

Immigration

Baroness Scotland of Asthal: My honourable friend the Minister for Immigration, Citizenship and Nationality (Tony McNulty) has made the following Written Ministerial Statement.
	In February 2005 the Government published Controlling our Borders: Making Migration Work for Britain, a five-year strategy for immigration and asylum. I would like to update the House today on progress in three key areas: the development of a points-based scheme for managed migration; the introduction of new policies on limited leave, active review and settlement for refugees; and the commencement of citizenship tests for new UK citizens.
	We are publishing today a consultation document, Selective Admission: Making Migration Work for Britain, which is the next step in development of a single points-based system for all routes to work, train and study in the UK. There is no doubt that skilled migrants continue to make a substantial contribution to our prosperity. Migration helps to fill gaps in the labour market, especially in public services such as health and education, and increases investment, innovation and entrepreneurship in the UK. International students contribute significantly to our education system and account for some £5 billion in exports value a year. We have to ensure that the system is focused towards those with the skills and talent this country needs, so migration works for Britain. The existing system is complicated and has developed over many decades. It needs to be simplified so that the general public can understand clearly the basis on which migrants are admitted, and why; so that employers, educational institutions and applicants find it swift, un-bureaucratic and value for money; and decision-makers find it straightforward to administer. The key tests for the system are that it should be operable, robust against abuse, objective, flexible to our changing economic circumstances, cost effective, transparent, useable and compatible with EU and international legislation.
	In order to keep the system robust against abuse, a key principle is that all those who benefit from migration, not just the Government but also employers, educational institutions and migrants themselves, should play a part in helping to ensure that it is not abused. We are consulting on a system of sponsorship which should help to ensure that we only admit those who meet our criteria, that people stick to the terms of their leave to enter while they are here and leave when they are supposed to. In some high-risk cases we could require financial bonds from migrants against their return home.
	The proposed framework for the new system is that there should be five tiers of entry to the UK to work, train or study:
	Tier 1: Highly skilled and investors.
	Tier 2: Skilled workers with job offers and workers meeting specific overseas requirements.
	Tier 3: Specific low-skill schemes to meet short term shortages.
	Tier 4: Students.
	Tier 5: Other temporary categories, visiting workers, selected development schemes to meet shortages, and youth mobility/cultural exchange.
	While ensuring that the system is robust against abuse and that our borders our strengthened, we aim to make it easier for employers to access the skills and experience they need and for educational institutions to attract genuine international students. The current two stage process for work permit employment will be replaced by a single application overseas, or in the UK, supported by a self-assessment programme on the web and in leaflets.
	The consultation document has been placed in the Vote Office and the Library. The consultation period closes on 7 November 2005. During the consultation period we shall be engaging in a number of workshops and other events to encourage a widespread and constructive debate. During this period more work will be done to gather evidence and to undertake comprehensive impact assessments. We plan to publish the outcome of the consultation and firm proposals for a reformed managed migration system in spring 2006.
	I am also announcing today that from 30 August onwards refugees will be granted five years' limited leave in the first instance, rather than immediate settlement as at present. If there is a significant and non-temporary change in conditions in a country, we would consider whether this should, in line with the convention's cessation clauses, trigger a case by case review of the position of all or some refugees from that country with limited leave. We would inform Parliament whenever we concluded that such a change justifying an individual review of cases had occurred.
	As is currently the case, any leave granted to refugees may be subject to review if the refugees, through their own actions, bring themselves within the scope of the 1951 Geneva Refugee Convention's exclusion or cessation clauses.
	Refugees will continue to be entitled to use public services and to claim key mainstream benefits.
	Resettled refugees are in a different position from refugees who arrive in the UK as asylum seekers. They have often been outside their country of origin for many years and have no prospect of returning there. As a result of this special position, I consider it appropriate to allow resettled refugees to retain an immediate right to settlement.
	From 30 August onwards, beneficiaries of humanitarian protection will be granted five years' limited leave, rather than three as a present. Similar policies on review will apply to them as to refugees with limited leave and they will also, from 30 August, benefit from immediate family reunion.
	I am also now able to give further details of the introduction of tests of knowledge of life in the United Kingdom to be taken by people applying for naturalisation as British citizens. In my Statement of 15 June I announced that these tests would be introduced in the autumn of this year, and would be offered by Ufi Ltd at some 90 Learn Direct centres throughout the United Kingdom. I can now confirm that the tests will be introduced on 1 November this year: every person who applies for naturalisation as a British citizen on or after that date and is not exempt by reason of age or disability will need to present a certificate showing that they have passed the life in the UK test or that they have attended an English language course which incorporates approved teaching materials on citizenship in the United Kingdom. These arrangements will supersede the provisions for testing applicants' knowledge of the English language which were introduced last year.
	The fee for the test will be £40, payable direct to Ufi Ltd in addition to the fee payable for a naturalisation application. Special arrangements will be made for those seeking citizenship who are resident in the Channel Islands or the Isle of Man. Details of this, and further information on how to apply to take the life in the UK test and what it will contain, will shortly be available on the Home Office's website.

Iraq: Service Personnel Prosecutions

Lord Goldsmith: In my Statement of 14 June 2004 (Official Report, cols. WS 22–23) I undertook to inform the House by way of Written Statement when any further charges are laid against British servicemen arising from incidents in Iraq. The Army Prosecuting Authority has directed that four individuals should stand trial by court martial for the offence of the manslaughter of Ahmed Kareem, an Iraqi civilian.
	The allegation against the servicemen relates to an incident in Basra, on 8 May 2003. It is alleged that the four servicemen detained four suspected looters of whom Mr Kareem was one. The servicemen allegedly punched and kicked the looters before forcing them into the Shat Al-Basra Canal. Mr Kareem could not swim and drowned.
	The cases against all four servicemen were reviewed by prosecutors of the independent Army Prosecuting Authority who applied the evidential and public interest criteria set out in the code for crown prosecutors. The Army Prosecuting Authority, following advice from highly experienced counsel, is satisfied that there is a realistic prospect of convicting all defendants and that the prosecutions are in the public interest.
	The servicemen who have been directed by the Army Prosecuting Authority to stand trial before a court martial have already been informed of the charges by the Army are:
	Sergeant Carle Nicholas Selman, (38) currently serving with the Scots Guards, currently in Germany.
	Guardsman Martin McGing, (21) with the Irish Guards, currently based in London.
	Guardsman Joseph McCleary, (23) with the Irish Guards, based in London.
	One serviceman, a Lance Corporal (21), with the Irish Guards, has yet to be informed of the charge against him. Once he has been notified, I will set out his name in a further Written Statement, which I will lay before the House at the earliest opportunity.
	No date has yet been set for the trial or preliminary hearings in this matter.

Lord Goldsmith: In my Statement of 14 June 2004 (Official Report, cols. WS 22–23) I undertook to inform the House by way of Written Statement when any further charges are laid against British servicemen arising from incidents in Iraq. The Army Prosecuting Authority has directed that seven individuals should stand trial by court martial for various offences. The offences and the names of those individuals are set out below.
	The allegations against the servicemen relate to incidents in Basra, from 13 to 15 September 2003. It is alleged that seven servicemen committed a number of offences against Iraqi detainees who had been arrested following a planned operation. One of the detainees, Baha Da'oud Salim Musa, was allegedly killed and inhumanely treated by one of these servicemen. The same serviceman is also alleged to have inhumanely treated other detainees and committed acts tending and intended to pervert the course of justice. It is further alleged that two other servicemen inhumanely treated the internees, who sustained injuries following repeated assaults. One further serviceman is alleged to have assaulted a detainee. The three remaining servicemen are charged with negligently performing their duties or neglecting to perform a duty, contrary to the Army Act 1955.
	The cases against all seven servicemen were reviewed by prosecutors of the independent Army Prosecuting Authority who applied the evidential and public interest criteria set out in the code for crown prosecutors. The Army Prosecuting Authority, following advice from highly experienced counsel, is satisfied that there is a realistic prospect of convicting all defendants and that the prosecutions are in the public interest.
	These offences have been directed to be tried before a court martial rather than the civilian courts.
	The men who have been directed by the Army Prosecuting Authority to stand trial and who have been informed of the charges against them are:
	Corporal Donald Payne (34) of the Queen's Lancashire Regiment, attached to 1st Battalion The Kings Regiment, based at Catterick, charged with three offences of: (i) manslaughter; (ii) inhuman treatment of persons; and, (iii) perverting the course of justice.
	Lance Corporal Wayne Ashley Crowcroft (21) of the Queen's Lancashire Regiment, currently based in Cyprus, charged with inhuman treatment of persons.
	Private Darren Trevor Fallon (22) of the Queen's Lancashire Regiment, currently based in Cyprus, charged with inhuman treatment of persons.
	Sergeant Kelvin Lee Stacey (28), of the Queen's Lancashire Regiment, currently based in Cyprus charged with assault occasioning actual bodily harm, alternatively common assault.
	Warrant Officer Mark Lester Davies (36) of the Intelligence Corps based in Preston, charged with neglecting to perform a duty.
	Major Michael Edwin Peebles (34) of the Intelligence Corps, based at Northwood, charged with negligently performing a duty.
	Colonel Jorge Emmanuel Mendonca (41) late of Queen's Lancashire Regiment, based at Northwood, charged with negligently performing a duty.

Local Authorities: Distribution of Formula Grant

Baroness Andrews: My honourable friend the Minister for Local Government (Phil Woolas) has made the following Written Ministerial Statement.
	The priority goal for government policy on local government finance is stability and certainty so that local authorities, their partners and the public have reasonable expectations of income and expenditure levels and trends.
	To that end I am today moving that policy forward with the introduction of three-year settlements for local government; it is an opportune time to review the basis on which we distribute formula grant to local authorities in England. Formula grant underpins the provision of a wide range of local services and is not hypothecated, so that decisions on local priorities can be made by local authorities. We have already introduced a degree of stability in the formulae for grant distribution; these were last changed for 2003–04, and we made clear then that we would not change the underlying methodology for a period of three years. From 2006–07, we therefore have the opportunity to change the distribution system.
	We want to take this opportunity to consider four main issues. First, the formulae that we use to distribute grant are designed to reflect the relative circumstances of local authorities, as well as the policy or operational context for local authority services. There have been developments over the years which mean that some formulae are simply out of date in that, for example, they still use old data such as that from the 1991 Census.
	Secondly, we need to establish a firm basis for the introduction of three-year settlements for local government. As part of that agenda, we need to find ways of making the finance settlements more forward looking to reflect growth in population.
	Third, we are examining ways of distributing grant that do not involve—or appear to involve—second guessing councils' spending and taxation decisions, to clarify accountability and responsibility for local choices.
	Finally, the system needs to reflect the change that is taking place in government funding for schools.
	Following the last review of grant distribution formulae, the Government have run a number of research projects and have been working with local government and other interested parties to consider possible changes to the formulae which could be introduced once the freeze had ended. The official level Settlement Working Group, consisting of representatives from all types of local authority in England along with interested parties from central government, has considered some 75 technical papers together with research reports over that period. Separate technical groups have examined the formulae for the police and fire and rescue services. I am grateful to all those who assisted the Government whether by contributing to these discussions or helping with the research and survey work.
	Following on from that work, the Government are now launching public consultation on options for change to the formula grant system. I am today publishing the consultation document on the ODPM website at www.local.odpm.gov.uk/finance/0607/consult/index.htm. Copies have been placed in the Vote Office and the Library of the House. We look forward to receiving views on our proposals. The consultation period will close on 10 October and the Government will then decide on the shape of the formula grant system from 2006–07 onwards.

Local Government: Three-year Revenue and Capital Grant Settlements

Baroness Andrews: My honourable Friend the Minister for Local Government has made the following Written Ministerial Statement.
	I am pleased to announce the broad outline of how the Government intend to implement three-year finance settlements for local government.
	The move to three-year settlements will provide greater financial certainty and stability for local government, council tax payers, businesses and other local partners. Three-year settlements will provide local government with the same certainty and planning horizons that departments already benefit from through our reformed public spending system. They will be a vehicle for greater long-term co-ordination across central government towards local government services. The benefits for local people should be improved service delivery and greater stability in future council tax.
	In December, ODPM published a consultation paper, Three-year Revenue and Capital Settlements, which sought views on the Government's proposals for the implementation of three-year settlements for local government in England. The consultation fulfilled a commitment in the 2004 spending review to consult on these proposals with local government and other stakeholders with a view to agreeing settlements for 2006–07 and 2007–08 during 2005. The consultation ended on 11 March 2005. Some 186 responses were received and they broadly welcomed the principle of introducing three-year allocations for revenue and capital funding. A summary of responses was published on 30 June and copies have been placed in the House Libraries.
	The consultation paper stated the Government's intention to move to three-year settlements for local government by the end of the current Parliament. The first settlement, to be announced in autumn 2005, will cover the two remaining years of spending review 04 (2006–07 and 2007–08). From 2008–09, three-year settlements will be fully aligned with the spending review cycle.
	Following consideration of the consultation responses, implementation will proceed along the following broad principles:
	a move to greater certainty in forward indications of local authority council tax levels. This will be based on further discussions with local government to ensure maximum forward looking information for council tax payers;
	specific revenue grants will generally be allocated on a three-year forward basis;
	for formula and revenue grant, we will align all aspects of three-year settlements with the existing spending review round, with firm three-year allocations being announced for the first full spending review cycle after three-year settlements are introduced. To make these settlements more forward looking, stable and predictable we will use projections of changes in population and council tax base; and will not; except in entirely exceptional cases, retrospectively amend any year's settlement;
	capital funding, whether in the form of grant or supported borrowing, will generally be allocated on a three-year forward basis with exceptions for some small bid-based programmes, funding for emergencies and funding for large one-off projects; and
	the formulae proposed for the 2006–07 housing revenue account subsidy (HRAS) determination will remain unchanged for the 2007–08 HRAS determination. Stock and other data on individual authorities will as usual be updated for 2007–08 by means of the base data return to be issued in 2006.
	To ensure local authorities and council tax payers gain the maximum benefits of three-year settlements, government departments will work to ensure that their funding is either moved to a firm three-year basis or designed to offer authorities as much forward certainty as possible. The principles outlined above will be applied by government departments, in conjunction with local government, as they finalise the details of the settlement in the run up to its announcement in the autumn.

Meat Hygiene Service: Annual Report and Accounts

Lord Warner: My honourable friend the Parliamentary Under-Secretary of State (Caroline Flint) has made the following Written Ministerial Statement.
	The 2004–05 annual report and accounts for the Meat Hygiene Service was laid before Parliament today.
	Copies will be placed in the Library, but formal printing and publication will not take place for another six to nine weeks, pending preparation of a version in the Welsh language, as required by the Welsh Language Act.

Medicines Commission and Medicines Act Advisory Bodies: Annual Reports 2004

Lord Warner: My right honourable friend the Minister of State (Jane Kennedy) has made the following Written Ministerial Statement.
	I have received the annual report of the Medicines Commission for 2004, which has been laid before Parliament today in accordance with the requirements of Section 5(2) of the Medicines Act 1968.
	Bound volumes have been placed in the Library containing the 2004 reports of the Medicines Commission, the Committee on Safety of Medicines, the Advisory Board on the Registration of Homoeopathic Products, the British Pharmacopoeia Commission, the Independent Review Panel on Advertising, the Independent Panel for Borderline Products and the Veterinary Products Committee.
	I am glad to acknowledge the valuable work done by the distinguished members of the Medicines Act advisory bodies and thank them for the time and effort dedicated in the public interest to this important work.

NHS Bodies: Annual Accounts

Lord Warner: My right honourable friend the Minister of State (Jane Kennedy) has made the following Written Ministerial Statement.
	For the health service bodies listed as follows, their annual accounts and any accompanying Comptroller and Auditor General reports have today been laid before the House of Commons pursuant to Section 98(1C) of the National Health Service Act 1977. Copies have been placed in the Library.
	Counter Fraud and Security Management Service
	Dental Practice Board
	Dental Vocational Training Authority
	Family Health Services Appeal Authority
	Health Development Agency
	Health Protection Agency
	Mental Health Act Commission
	National Blood Authority
	National Clinical Assessment Authority
	National Institute for Clinical Excellence
	National Patient Safety Agency
	NHS Information Authority
	NHS Logistics Authority
	NHSU
	Prescription Pricing Authority
	UK Transplant

Northern Ireland Prison Service: Annual Report and Accounts 2004–05

Lord Rooker: My right honourable friend the Secretary of Secretary of State for Northern Ireland (Peter Hain) has made the following Ministerial Statement.
	I have placed copies of the Northern Ireland Prison Service's annual report and accounts for 2004–05 in the Libraries of both Houses.
	The annual report details that the service met nine of its 11 key targets. It also outlines that of the comprehensive programme of 28 development objectives set for the service, 15 were achieved, five were partially achieved and substantial progress made towards meeting the remaining eight.
	
		
			 Key Business Area Key Targets Outturn 
			 Security No escape for top and high-risk prisoners. Met: No escapes in this category 
			  No more than three escapes per 1000 medium and low risk prisoners. 
			  Met: One escape in September 2004 
			  
			 Safety The number of staff assaulted by prisoners is less than a ratio of five per 100 prisoners. Met: Outturn for the year was 0.6 per 100 prisoners . 
			  The number of prisoners assaulted by prisoners is less than a ratio of six per 100 prisoners. Met: Outturn for the year was 0.9 per 100 prisoners . 
			 Regimes and reducing re-offending An average of at least 18 hours constructive activity per week for each sentenced prisoner. Not Met: 17.4 hours per week achieved . 
			  An average of at least nine hours constructive activity per week for each remand prisoner. Met: 9.5 hours per week achieved . 
			  To ensure 82.5 per cent. of prisoners serving six months or more are working to a resettlement plan and that 95 per cent. of lifers work to a resettlement plan, including preparation of the plan, in the first six months from sentence. Met: Outturn of 86.7 per cent. for determinate prisoners and 96.3 per cent. for life sentence prisoners 
			 Staff and developing the service Deliver at least 85 per cent. of the planned training days associated with the agreed corporate training priorities. Not Met: The final end of year overall percentage was 77 per cent. . 
			  Reduce the rate of absenteeism to an annual average of no more than 19 days per head. Met: Average staff sickness days per head was 16 
			 Finance, corporate governance and improving business performance Ensure the average cost per prisoner place does not exceed the target to be agreed with HM Treasury. Met: The Prison Service met its 2004–05 CPPP target of £86,800 as agreed with Treasury. The actual 2004–05 CPPP outturn was £85,935 . 
			  Lay the Annual Report and Audited Accounts before Parliament prior to the summer recess. Met: Annual Report and Audited Accounts laid before Parliament on 20 July 2004

Northern Ireland: Equality Commission

Lord Rooker: My right honourable friend the Secretary of Secretary of State for Northern Ireland (Peter Hain) has made the following Ministerial Statement.
	I am pleased to announce today the appointment of Bob Collins as the new Chief Commissioner of the Equality Commission for Northern Ireland. I am also appointing four new commissioners—Bryan Johnston, James Knox, Professor Eithne McLaughlin and Elaine Waterson.
	The appointments follow an open process based on merit. The new chief commissioner will take up the post from 1 August 2005, succeeding Dame Joan Harbison, whose term of office concludes on 31 July 2005. The terms of office of three other commissioners, Alan Henry, Ann Hope and Ruth Lavery also conclude on that date. The four new commissioners will also take up post from 1 August, joining the 13 existing commissioners.
	The Equality Commission for Northern Ireland is a key institution of the Belfast agreement and plays a vital role in protecting and promoting equality in Northern Ireland. I am grateful for the great commitment and expertise that Dame Joan and the other departing commissioners have brought to the commission. I am particularly grateful to Dame Joan for her work in establishing the commission from the four equality bodies that preceded it and for seeing the commission through its formative years so effectively.
	I am confident that the new appointees will continue their good work and ensure that the commission continues to carry out its important duties effectively.

Northern Ireland: Racial Equality Strategy

Lord Rooker: This Statement sets out how I intend to take forward a racial equality strategy for Northern Ireland.
	This Statement is all the more timely following the appalling attacks in London of 7 July. These attacks were an attack on all of us. The bombs did not discriminate and people of all faiths and none and people of all racial groups have been victims. At this time, we should remember that communities in the United Kingdom have more that unites them than divides them.
	Government are determined that the atrocities will not be allowed to create tension between our communities. The good relations policy and strategic framework, with its vision of a shared and inclusive society, which was published on 21 March 2005 and the racial equality strategy provide solid foundations for a future shared between and within the communities of Northern Ireland—both old and new. They provide a sound basis for a society where relationships are rooted in mutual recognition and trust.
	The Government's vision for Northern Ireland is of a society in which racial diversity is supported, understood, valued and respected: a society where racism in any of its forms is not tolerated and where we live together as a society and enjoy equality of opportunity and equal protection.
	The publication of the strategy today sets a framework for Government and all sections of civil society in Northern Ireland to contribute to achieving that vision. The framework will allow us:
	to tackle racial inequalities in Northern Ireland and to open up opportunity for all;
	to eradicate racism and hate crime; and
	together with A Shared Future—Policy and Strategic Framework for Good Relations in Northern Ireland, to initiate actions to promote good race relations.
	It sets out six shared aims that will point the strategic direction for action by departments, agencies and wider society, working individually and together, to make a significant difference to the lives of people from minority ethnic backgrounds. The aims of the strategy are: eliminating racism, equality of protection; equality of service provision; participation; dialogue and capacity building.
	The strategy will be taken forward through an action plan that will be developed by the Government in collaboration with the Racial Equality Forum.
	Government will lead by example. They will set the pace to promote racial equality through a strong public policy agenda. Ultimately, however, sustained and deeper progress depends on political stability. It will require leadership at political, civic and community levels.
	Copies of the Racial Equality Strategy for Northern Ireland have been placed in the Libraries of the House and are also available on the website at www.ofmdfmni.gov.uk/raceequality.

Prison Service: Annual Report and Accounts 2004–05

Baroness Scotland of Asthal: My honourable friend the Parliamentary Under-Secretary of State for the Home Department (Fiona Mactaggart) has made the following Written Ministerial Statement.
	The Prison Service's latest annual report and accounts, setting out the service's performance during 2004–05 will be laid today and copies will be placed in the Library.

Public Expenditure

Lord McKenzie of Luton: My right honourable friend the Chief Secretary to the Treasury (Des Browne) has made the following Written Ministerial Statement.
	In June 1997, the incoming government launched a Comprehensive Spending Review (CSR). The CSR was the most fundamental and in-depth examination of government spending and priorities ever attempted. Moving beyond the short-termism engendered by the old annual planning cycle and building on the platform of stability provided by the new fiscal code, the CSR set long-term aims and objectives for each department and put in place a public expenditure and performance management framework within which these long-term ambitions could be achieved.
	The CSR set the Government's priorities for the long-term: sustainable growth and employment; fairness and opportunity; efficient and modern public services. To support this longer-term approach to public spending, the CSR introduced a series of key reforms to modernise the public expenditure framework including firm three-year departmental spending plans, separate current and capital budgets, and outcome-focused public service agreements to support delivery and improve departmental accountability.
	The CSR allocated significant additional resources, backed by reform, to the Government's key priority areas, with over 50 per cent of the increase in departmental expenditure limits and local authority spending being allocated to education and health. In the 10 years to 2007–08, subsequent reviews in 2000, 2002 and 2004 have built on the objectives, reforms and priorities first established in the CSR.
	The framework for managing public expenditure established by the CSR has also proved robust. Three-year spending plans have been set and delivered in successive spending reviews. The separate management of current and capital spending has allowed public sector net investment to rise from 0.8 per cent of GDP in 1996–97 to 2.2 per cent by 2007–08.
	Over the past decade the Government have shown how one can deliver a strong economy and sound public finances at the same time as sustained and substantial growth in investment in public services. Looking forward, there are new challenges Britain will need to address in order to lock in these benefits for the decade to come, including:
	a rapid increase in the old age dependency ratio as the "baby boom" generation reaches retirement age;
	the intensification of cross-border economic competition as the balance of international economic activity shifts toward rapidly growing emerging markets such as China and India;
	an acceleration in the pace of innovation and technological diffusion and a continued increase in the knowledge-intensity of goods and services;
	continued global uncertainty with ongoing threats of international terrorism and global conflict; and
	increasing pressures on our natural resources and global climate from rapid economic and population growth in the developing world and sustained demand for fossil fuels in advanced economies.
	These changes will have fundamental and far-reaching implications for public services and will require innovative policy responses, co-ordination of activity across departmental boundaries and sustained investment in key areas. While reaffirming the Government's commitment to their key objectives and building on the long-term framework the Government have put in place, it is right that the Government should periodically re-examine their public spending allocations in fundamental ways.
	With the start of the next spending review period coming a decade after the first, the Government propose to launch a second comprehensive spending examining what the investments and reforms initiated to date have delivered and what further steps must be taken to ensure that Britain is fully equipped to meet the challenges of the decade ahead. This review will:
	take a zero based approach to assessing the effectiveness of departments' existing spending in delivering the outputs to which they are committed;
	examine the key long-term trends and challenges that will shape the next decade and assess how public services will need to respond; and
	look at how the public expenditure framework can best embed and extend ongoing efficiency improvements and support the long-term investments needed to meet these challenges.
	The review will complement the work of the long-term reviews already under way into the future of transport, skills, pensions and local services.
	A report will be made on these public spending challenges in 2006. The Government will report on the next three-year spending review covering 2008–09, 2009–10 and 2010–11 in 2007 and will hold departmental allocations to the agreed figure already announced for 2007–08.

Rail Freight

Lord Davies of Oldham: My right honourable friend the Secretary of State for Transport (Alistair Darling) has made the following Ministerial Statement.
	As prosperity and the demand for goods grow, efficient freight transport is increasingly vital to the UK economy. The Railways Act 2005 has placed responsibility for rail freight in England with the Department for Transport and, with the repeal of Section 206 of the Transport Act 2000, the SRA's 2001 rail freight strategy will cease to be in force. It is important, therefore, that the Government restate clearly their objectives for rail freight.
	The 10-year plan for transport, published in 2000, forecast potential growth in rail freight of up to 80 per cent to 2010. This was interpreted by many as a target, though we had always made it clear that actual growth would depend on a number of factors—in particular, the success of rail freight operators in winning business in highly competitive markets.
	In fact, although it is now recognised that the 80 per cent forecast is unlikely to be met, growth in the rail freight market has been impressive. Rail freight is a thriving and competitive private sector industry, and since privatisation (1995), levels of freight moved have increased by 55 per cent (measured in tonne kilometres). Rail freight's market share also increased over the same period from 8.5 per cent to 11.5 per cent.
	The Government welcome this growth and wish to see it continue. Our clear policy aim is to see goods being moved in a sustainable way, which maximises benefits to the economy and to society. For instance, because they generally have less impact on society than road transport, rail and water freight can bring substantial benefits. In 2004–05, the rail freight industry moved the equivalent of over 7 million lorry journeys and saved 1.43 billion lorry kilometres, delivering significant reductions in pollution and congestion. We believe rail therefore has a crucial role to play in goods transport alongside other modes, and we wish to see freight travelling by rail instead of road wherever this makes most sense.
	This aim can be delivered most effectively by a competitive and dynamic private sector rail freight industry, and this is borne out by the growth since privatisation, which has been driven by real on-rail competition throughout the industry, including several new entrants to the market. We will not dictate to the industry how it should run its business or become involved in operational issues. Where disputes occur with other parts of the railway, they should be resolved through established rail industry dispute procedures.
	But government do have a role to play and a relationship with the rail freight industry. Rail freight companies run on the same tracks as the publicly-specified passenger railway—therefore, government have to be mindful of their needs. And government recognise and wish to encourage the important environmental and economic benefits that rail freight can bring.
	We will therefore ensure that our policies and regulations do not put unnecessary obstacles in the way of future growth; we will continue to provide financial support where it is affordable and offers the greatest environmental, congestion and safety benefits when assessed alongside support for other modes; and we will ensure that in specifying the passenger railways, we recognise and take into account the consequences of our decisions upon the rail freight industry.
	To achieve this, we will:
	Continue to support the principle of incremental access charges for freight operators.
	Rail freight's ability to compete against road and other modes is dependent upon stable and affordable charging for access to the network. The Government support this and believe it is best achieved through the principle of freight operators paying charges which reflect only the costs that they impose upon the network (in line with the charging principles set out in EU Directive 2001/14). We will therefore work with the rail industry to ensure this remains the case—for instance, providing clear guidance if and when the level of freight charges is reviewed by the ORR.
	Work with the freight industry to understand its needs when setting the strategy for the rail network, and to provide the greatest possible certainty of access
	In order for rail freight companies and their customers to invest, they need certainty about where and when they can run trains on the network. The Government will work with the industry to develop robust demand forecasting and modelling tools, and to ensure that they understand the needs of the freight industry when developing their high-level output specification and other key policies. We will ensure that our appraisal methodologies treat freight and passenger interests equitably, and we have also committed, through the Railways Act, to ensuring that appropriate compensation will be provided should the contractual interests of freight companies or others be impaired by changes in outputs. In addition, we welcome Network Rail's decision to produce a national freight utilisation strategy; which will act as a key input to the route utilisation strategies, and also the ORR's recently published policy that UK freight operators should be eligible for access contracts of up to 10 years (and longer in exceptional circumstances).
	Ensure grant funding is targeted to deliver the maximum benefits in terms of reducing congestion, pollution and accidents
	From 2007–08, the Government's funding programmes for rail freight, including the re-opened freight facilities grant, will be incorporated alongside water and road freight grant programmes into a cross-modal sustainable distribution fund. This will prioritise funding across all three modes to favour those grants that offer the maximum benefits for the money being spent. In the mean time, the department will consider in consultation with the industry the most appropriate future form for company neutral revenue support and other grant programmes (which may include opening funding to flows originating from the Channel Tunnel) within the sustainable distribution fund, and seek renewed state aids clearance.
	Work to ensure that regional and local planning decisions reflect Government priorities relating to the sustainable movement of goods
	We wish to see private sector investment in major rail freight facilities, such as intermodal terminals, continue. It is not appropriate for the Government to promote individual schemes—it is for the private sector to develop proposals and progress them through the necessary approvals including planning consent. But the Government do want due account to be taken of our policy goals for the sustainable movement of goods. This does not imply an active role in individual cases, but if necessary we will be ready to act to ensure decision makers are better informed particularly in the application of planning guidance. We will also be ready to consider changes to planning guidance where appropriate.
	Work with the industry and Network Rail to establish how freight growth can be accommodated on the network
	The ORR is currently carrying out work in conjunction with Network Rail to establish the baseline capability of the network. Once that has been completed, we will consider with the industry how we can support, fund and accommodate change. This could be through reallocations of capacity within the existing network which make sense for both passengers and freight, incorporating incremental freight benefits into planned renewals, or considering how freight-specific enhancements might be taken forward by either the private sector or, in the long term, Government (subject to strict affordability and value for money criteria).
	Work with the devolved administrations, and with the EC to ensure a consistent UK and Europe-wide approach to rail freight
	Rail freight is a cross-border business. The Railways Act gave increased powers to support rail freight to the devolved Administrations, and we will work with them (and with other partners such as TfL and the passenger transport executives) to ensure that policies relating to rail freight across the UK are consistent. We will also continue to work with the EC to liberalise access to the wider European rail freight market and increase competition, including through the Channel Tunnel.

Serious Fraud Office: Annual Report

Lord Goldsmith: The annual report of the Serious Fraud Office has today been published and laid before Parliament. Copies have been placed in the Libraries of both Houses.

Terrorism: Counter-financing

Lord McKenzie of Luton: My right honourable friend the Chancellor of the Exchequer has made the following Written Ministerial Statement.
	Last week's attack on London was an affront to all democracies. Just as there should be no safe haven for those who perpetrate terrorism, so there should no hiding place for those who finance terrorism. To deliver this requires action in the UK, across Europe and globally.
	Within the UK
	Blocking terrorists' access to the financial system is a critical preventive measure; and freezing funds already in the system prevents those funds being used to perpetrate atrocities. In the UK, our financial institutions have to date frozen over £370,000 in 45 accounts. In order better to integrate efforts within the UK to disrupt terrorist finance, I can announce that the Treasury has established an inter-departmental asset freezing working group to identify and vet appropriate targets for asset freezing action under Treasury powers.
	While four years ago just 30,000 reports of suspicious transactions relating to terrorist financing and money laundering were sent to the National Criminal Intelligence Service, last year 150,000 suspicious transaction reports were made. Of those relating to terrorist finance, between 20 to 30 per cent subsequently either led to a longer-term investigation, or contributed substantially to an existing investigation. It is essential that the suspicious transactions regime be both proportionate and effective. The Home Secretary and I have asked Sir Stephen Lander to report by March 2006 on how these investigations of suspicious transactions can be best pursued under the new Serious and Organised Crime Agency.
	I am today making £20 million available from the reserve to the Home Office for the exceptional costs of support to victims and of policing and other activities arising from the attacks in London on 7 July. The help for victims will include money for compensation through the Criminal Injuries Compensation Scheme and funds to cover the donation to the London Bombings Relief Charitable Fund which the Home Secretary announced yesterday.
	European agenda
	Last week European Finance Ministers reaffirmed that there will no hiding place for those who finance terrorism. Europe has found common cause in our shared battle against terrorism.
	As EU president, we will work closely with all member states, the Commission, European Parliament and the EU counter-terrorism co-ordinator to implement the action plan against terrorism we agreed after the Madrid bombings.
	Our first priority will be to deny terrorists access to financial resources—ensuring that terrorist assets are identified and isolated quickly and effectively. We will also seek to conclude work on the money laundering and payments systems in order to safeguard the integrity of the financial system from abuse. The European Union has made an undertaking to offer other countries that need it advice and technical assistance to build up anti-terrorist finance capacity. We will also work with the Commission to undertake an assessment of the EU's own performance in implementing the financial action task force's special recommendations to combat terrorist financing.
	Globally
	In order to make our fight against terrorist finance as global as the threat of terrorism itself, I have asked that international co-operation be redoubled. Britain will support improved technical assistance to those countries that need to enhance their counter terrorist capacity, so that no country, will offer a hiding place for terrorist finance. Under the UK G8 presidency, a group of financial experts has developed a programme of reforms to ensure that we identify and isolate terrorist funds on a global basis. I will ask this group to report on its progress to Finance Ministers in September. As EU president, the UK will host an EU-US conference of terrorist finance experts in October to identify key recommendations for future action. We are currently working with our security council partners to establish a new resolution to succeed UNSCR 1267 against al-Qaeda, to update and reassert the international response against the threat of international terrorism.
	We will report back to the House on our efforts to safeguard the financial system from abuse by terrorists and other criminals at the time of the Pre-Budget Report.